COMMISSIONER OF INCOME TAX Vs. R BHARATHAN

JUDGEMENT

(1.) OM PRAKASH At the instance of the Revenue of Tribunal referred the following question relating to the asst. yr. 1982-83 for the opinion of this Court :

(2.) THE facts as found by the Tribunal are that the assessee an individual carried on abkari business, both in arrack and toddy. The assessee showed in return that he had received 58,950 litres to arrack. The stock register of the assessee showed consumption of arrack to the extent of 1,27,798 litres, the break-up of which was as follows : As against the above consumption, the assessee accounted for only 58,950 litres. The AO, therefore, held that unaccounted sales were to the extent of 68,848 litres. He further held that net profit from the arrack brought from Puliyoorsala was at the rate of Rs. 16 per litre and the profit in regard to purchases was at the rate of Rs. 10 per litre. The AO, thus, assessed total profits on unaccounted sales of arrack at Rs. 7,50,124.

(3.) THE AO then found as follows :